Epitome Edited - BROKEN

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Transcript of Epitome Edited - BROKEN

of early-stage company building has taught us that vast wealth is accumulated during major market or industry changes

These relationships and background knowledge led to the belief that we could build a

“railroad”

to a new Healthcare future8+ years focused on interdisciplinary precision health and medicine companies with 10 companies currently in this market spaceThe Healthcare market is going to be disrupted over the coming decade and we have a plan and the critical components necessary to catalyze this change

Connectivity is complete, with greater than 80% smart phone usageClinical is fragmentedPharmaPharma is willing to pay for dataBaby BoomersGeneration XMillenialsChildren71% want to use an app to manage their health records63% would share wearable data with physician (but doctors don’t want it)Each hospital is covered with a different EMR and a different set of languages - No interoperabilityPrimary CarePediatricNeurologyUnited States of HealthcareCollecting, processing, and delivering

300 million consumersthat is ripe for disruption$Current state of Healthcare landscape:· New technologies· Large datasets· Limited connection to consumers· Institutions changing by regulations· Disparate systemsSafe Harbor StatementThis presentation may contain statements of a forward-looking nature relating to future events. Statements contained in this presentation that are forward-looking statements are intended to be made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company’s current beliefs, and a number of important factors could cause actual results to differ materially from those expressed herein.

Please see the Company’s Annual Report on Form 10-K, as well as subsequent filings, filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company’s business, including but not limited to the risks and uncertainties associated with venture capital investing and other significant factors that could affect the Company’s actual results. Except as otherwise required by Federal securities laws, Harris & Harris Group, Inc. undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

OrthopedicGeriatricFertilityHow did we get here?Healthcare is facing fundamental challengesNOT

SUSTAINABLENOT EFFECTIVENOT EVIDENCE BASEDMajor diagnoses missed in 1 out of 5 patientsOncologyCardiology1/5 of $18 trillion GDP spent on healthcare today, projected to grow to 1/2 of GDP in 2035Over 80%

of expenditures are on chronic disease ($2 Trillion)Pharmacogenomics proven in over 100 drugs, but there are over 6,000 drugs on the marketFrustrated patient populationFragmented clinical providers Pharma starved for new information sourcesTechnologies don’t communicatePayers desperately seeking efficiency Promise of Precision Medicine not being metBetter outcomes

not being seenCostsnot being reducedWe have identified the fundamental components and gathered the key pieces of the system to take advantage of this disruptive period and accelerate the adoption of precision health and medicineHow we see the landscape…But change is coming...What is missing: An engine that can interrogate across health data types and transport actionable information to the clinic and consumerDire need

for more physicians / increase efficiency of current workforce (>45,000 physician shortfall in 2025)Difficult to transfer medical records from one system

to anotherGenentech signed a

$60 million

deal with 23&me for access to a portion of their dataRoche buys majoritiy stake in Foundation Medicine for $1 BillionRoche leads

$175 million investment into Flatiron Health We have identified a market about to experience massive disruption and we have developed a plan to

realize value in this marketHealthcare premiums have increased 123% as opposed to wages increasing only 40% since 2001USA spends 40% more per capita on healthcare than any other country6 different payment rates for medical procedures75% of healthcare spending spent on 15% of healthcare users$40%Estimated 17 years pass before research medicine becomes part of clinical practiceValid scientific evidence supports “well below half” of the practice of medicine43% of a doctor’s time is spent entering data into a computer Half of all diseases are untreatable and in the other half the drugs only work half the time440,000 preventable deaths in hospitals and 700,000 serious drug reactions occur in the USA each year Changing demographics are disrupting patient baseBig Data driving interpretation Domestic policies are forcing institutional change Quantifiable data is now available Interpretation of data will lead to better outcomesBut it took almost 50 years to standardize the railroad and create a powerful system of transportationN > 7 BillionN of 1SensorsImagesHealth RecordsLabsOmicsDistribution of National Health Expenditures, by Type of Service (in Billions), 2010Hospital Care$814.0 (31.4%)Physician/Clinical Services$515.5(19.9%)Prescription Drugs$259.1(10.0%)Nursing Care Facilities & Continuing Care Retirement Communities$143.1(5.5%)Home Health Care$70.2(2.7%)Other Personal Health Care$814.0 (31.4%)Other Health Spending$407.6 (15.7%)Total Expenditures: $2,593.6 BillionTechnologyGenomePhenomePhysiomeAnatomeMetabolomeTranscriptomeEpigenomeProteomeMicrobiomeExposomeOver 700,000 people killed each year from drug-resistant infectionsPatients have access to informationAccountable Care Organizations (Fixed Fee Medicine)EMRs and InteroperabilityRequires validated large cohort studies